Nusantara Digitalization Expo, KADIN Chairman: Digitalization Digitization Promotes Economic Equity and Quality of Public Services

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Solo, 30 March 2022 – Economic and Digital Transformation is one of the three priority issues of Indonesia’s G20 Presidency. This is an effort to optimize inclusive digital technology by encouraging the digitalization of business and government sectors both in Indonesia and other developing countries.

In addition, economic digitalization is in line with Indonesia’s commitment to achieve the target of Sustainable Development Goals (SDGs) by 2030, namely developing the economy to create decent jobs in order to eliminate poverty.

In line with the two agendas of G20 and SDGs, the Indonesian Chamber of Commerce and Industry (KADIN), Indonesian Internet Foundation, and Surakarta City Government of Central Java Province held the Digitalization Nusantara Expo and Summit (DNES) 2022 at Edutorium of Muhammadiyah Surakarta University (UMS) for three days, Tuesday – Thursday, March 29-31.

DNES 2022 forum is part of B20 Indonesia which in turn is also a part of Indonesia’s G20 Presidency. The event was opened by President Joko Widodo who was accompanied by the Secretary General of the Ministry of Home Affairs Suhajar Diantoro, as well as Chairman of KADIN Arsjad Rasjid.

According to Arsjad Rasjid, Indonesia’s steps to become the 7th largest economy in the world by 2030 will be realized if Indonesia can prepare themselves soon to enter an increasingly complex, digitalized global trade era which demands innovation as well as productive human resources with high-quality.

Arsjad said that the current economic growth of Indonesia has recovered with 2021 GDP figure was at 3.7% yoy compared to 2020 which was in minus. In 2022, we are optimistic that the growth target of 4.7-5.5% will be achieved. This is because the economy is starting to move, especially digitalization in the consumption sector.

“The pandemic encourages the acceleration of digitalization in a significant manner with the demand for technology increased due to the Public Activity Restrictions (PPKM). Today, with 202 million internet users, it contributes US$70 billion to the digital economy of 2021. In fact, the value of digital economic growth in 2025 is projected to reach US$146 billion,” said Arsjad in his online opening remark at the DNES 2022 on Tuesday, March 29.

Currently, the Indonesian Chamber of Commerce and Industry recorded that the growth of startups in Indonesia has reached 2,300 startups, 12 of which have become unicorns. According to data from Bank Indonesia, digital intensity in online consumption or e-commerce in 2021 even reached Rp400 trillion and digital penetration rate in MSMEs has reached 26%.

“In actuality, it remains to be wide and open. However, there are still many potential challenges of digitalization, starting from the digital divide between urban and rural communities due to inequal distribution of communication and internet infrastructure, although the government is currently developing the connectivity,” he explained.

KADIN sees the digitalization of economy, government, and private sector will play a key and strategic role in the future which requires Indonesia to be prepared in a more aggressive manner. Moreover, there are many challenges in the future in terms of technology, HR, and regulations. Arsjad said that DNES 2022 is expected to become a milestone for equal distribution of access to digitalization throughout Indonesia.

Furthermore, the Deputy Chairperson of the Coordinator of the Indonesian Chamber of Commerce and Industry who is also the Chairperson of the B20 Organizer Shinta Kamdani, stated that the key to unlocking extraordinary economic growth in Indonesia is through opening public-private partnerships and creating a conducive climate for investors that is able to have a broad impact so that the mission of Indonesia Golden 2045 can be materialized.

To build and make the economic digitalization program a success as planned by the government, Shinta said that KADIN continues to make strategic innovations and measures, among others accompanying MSMEs to enter and study the ecosystem of digital economy, launching KADIN Tech Hub, as well as performing upskilling and reskilling of HR through vocation education and training.

“DNES 2022 Summit is a side event of B20 Indonesia where KADIN acts as the organizer. The summit is divided into several forums which invite various competent speakers in the digitalization industry. The dialogue forum will discuss the topic on importance of digitalization transformation for economic sector as well as its implementation for public services of local governments,” Shinta said.

In this DNES 2022 forum, several ministers are expected to share their views on the government’s role in encouraging digital economy transformation, namely the Coordinating Minister for Economic Affairs Airlangga Hartarto, and Minister of Village, Disadvantage Regions, and Transmigration Abdul Halim Iskandar.

The Deputy Chairperson for Technology and Information at the Indonesian Chamber of Commerce and Industry Firlie H Ganinduto and Mayor of Surakarta Gibran Rakabuming Raka as host of DNES 2022 are also expected to participate in the discussion. Firlie hopes the forum will allow speakers, heads of regions, business actors, and people to achieve the synergy and collaboration of knowledge about digitalization and its implementation. “There needs to be a special ministry to handle digitalization issue because digitalization has penetrated various sectors of life. Therefore, to accelerate digitalization transformation in regions, there needs to be a ministry which focuses on managing it,” he said.

In the forum with the theme of digital data infrastructure for regions at the DNES 2022 event, Head of B20 Digitalization Task Force Ririek Adriansyah said that a digital environment needs to be created through National Digital Platform, development of telecommunication infrastructures and services which are evenly distributed throughout regions, especially data center and cloud so that there are no gaps in digital technology access.

“Currently, Telkom Indonesia has data centers spread across 12 large cities in Indonesia and Telkom is building a Telkom HyperScale Data Center which covers an area of 65,000 m2 with a total capacity of up to 10,000 racks to accommodate the needs of future business digitalization such as edge computing, 5G services, blockchain and other digital solutions,” said Ririek, who is also President Director of Telkom Indonesia, a State-Owned Enterprise.

Aside from data center, Ririek also stressed the importance of cloud technology in supporting business and public services in digital era. Ririek said that the benefits of using data center and cloud in business and public service schemes are efficient and effective in reducing production cost, providing stability due to high availability, maximum security, as well as having high quality of service and performance.

Meanwhile, the Chairperson of the Standing Committee of the New Communications and Informatics Initiative of KADIN, Fajrin Rasyid presented KADIN Tech Hub Platform in the same occasion. According to Fajrin, the platform brings together companies that have issues to meet with the ecosystem that can provide solutions for their issues in the spirit of a collaborative economy.

‘So, this platform provides an integrated solution for companies, whether they are large corporations or MSMEs that are constrained with digitalization. This is kind of a hub, a place to have interactions, dialogues, sharing of collaborative ideas to support and assist companies, mainly MSMEs, in improving quality and capacity in digitalization in order to compete in digital era as well as to achieve SDGs to eliminate poverty through economic growth,” Fajrin said.

DNES 2022 Summit is held for 3 days (March 29-31). The summit is divided into several forums which invite various competent speakers in the digitalization industry, and it will discuss the topic on importance of digitalization transformation for economic sector. The discussion in each forum is expected to provide recommendations and solutions for any issues on digitalization.

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